Was this a good setup?

daveim · December 10, 2019, 10:49am

Hi this morning I watched this potential setup but I didn’t take… I would have lost 20 ticks!!!

But I don’t understand if it was a good one or not?

Please help.

Thanks.

darrell · December 10, 2019, 11:15am

This was a long trade against a down trend. There is no divergence. You can’t compare OD on an up move or OD in a down move. Remember divergence is when the market is moving in the same direction and getting “tired” ie making a higher high with a lower volume on OD. Only then would you take a trade counter trend. Otherwise only trade with the trend.

daveim · December 10, 2019, 12:31pm

Thank you for your reply… attached a screenshot if I have right understood (my comment on your feedback in orange).

darrell · December 11, 2019, 11:30pm

There is no od divergence it must be part of the same trend same direction to compare od numbers for divergence. Also remember focus on setup 2 for first 60 days.